Wednesday, January 22, 2014

IOC Trading Long Follow Up

IOC saw some draw down as a trading long, I don't recall how much, but it was more than I'd like to see. Right now it's down just over 1%, but it looks like it has done a LOT of work in creating a solid base from which to bounce from, I'm not sure I want to call it a rally.

 This is the daily chart, I didn't like IOC long as a knife catching play or even as a gap fill, I liked it because it had solid signals and I held it through the draw down because those signals remained solid.

On an hourly chart, talk about fractal, we have a larger inverse H&S bottom and the head fake move we first saw actually turned out to be the head of the larger pattern (no puns intended there). It's sort of a complex H&S with 2 shoulders on each side.

The top red trendline should probably be moved up to the $55 level as there's candlestick resistance there and it's a whole number/psychological magnet. I'd say stage 2 mark up is just north of $55.


The 4 hour chart shows heavy distribution just before the gap down and strong accumulation at the head fake/ inverse H&S bottom or head and it has stayed leading positive since on such a strong timeframe.

 The 30 min chart too shows where the real accumulation picked up, at the bottom of the base/head.

The 15 min chart shows the same thing, lots of accumulation of that low and we are still leading positive at the neckline which means to me, this is likely going to see a nice upside move thus I'm glad to have stuck with it and it's not in a bad area all things considered as a new trading position, not a trending position.


Thus far all of the recent upside has been confirmed or the signals have been accurate, this is the intraday 1 min

And the 5 min perfectly in line except 1 distribution point which was part of forming a shoulder.

If you are in IOC, I'd set some alerts above $55 for a break out to stage 2. If you are interested in IOC, this is still a decent level. Based on the price pattern alone, the move should hit at least $66, but I could see $72 before it ran in to some heavier overhead resistance.

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